Daily Market Color

Historic Brexit Deal Pulls Equities Higher

Historic Brexit deal pushes equities higher
Equities rose for a second day during today’s holiday-shortened trading session – the S&P 500 and DJIA closed 0.4% and 0.1% higher, respectively.  Treasury yields and swap rates ended mixed – the 10-year UST yield closed 2 bps lower at 0.92%.
UK and EU negotiators reach a Brexit deal 
The deal details that EU-UK goods trade will remain free of tariffs and quotas but will be subject to customs and other controls.  The 2021 focus will likely shift on the specific details relating to the fishing industry transition, whether goods remaining tariff and quota free result in higher prices and how a level playing field for business on both sides will actually work.
FX Thursday
The US dollar was mostly lower today and is on track to have its worst performance in three years.  With the Federal Reserve continuing to manage policy through an accommodative lens, investors are betting the dollar will continue to trend lower as we head into 2021.
Reminder: markets will be closed tomorrow in observance of Christmas Day.  We wish everyone a happy, safe, and healthy holiday!

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